Case details for James Pandeli

Name: James Pandeli

Name: Friendly Service Centre Limited

Date of Birth: 5 / 5 / 1963

Date Order Starts: 29 / 7 / 2019

Disqualification Length: 6 Years 0 Month(s)

CRO Number: 03469012

Last Known Address: 5 FRESTON GARDENS, BARNET, , , , EN4 9LX

Conduct: Between 6 July 2017 and 17 July 2017 Mr James Pandelli (“Mr Pandelli”) caused Friendly Service Centre Limited (“FSCL”) to divert funds of £81,812 which were assigned to an invoice finance company contrary to the terms of the Agreement for Purchase of Debts dated 23 February 2016 and Schedule to the Agreement for the Purchase of Debts dated 26 February 2016 in that:

  • On 23/02/16 FSCL entered into an agreement with an invoice finance company and obtained an invoice discounting facility of £1,200,000. All of FSCL’s existing debts and future debts were assigned to the invoice finance company. The Agreement for the Purchase of Debts was signed by him on 23/02/16 in his capacity as sole director of FSCL.
  • On 24/02/2016 FSCL’s customers were instructed by FSCL to make future payments to a recipient bank account which was controlled solely by the invoice finance company. Between 26/02/2016 and 04/07/2016, £6,103,342 (including £5,497,890 received from the company’s 2 main clients) was received by the specified recipient bank account.
  • As at 03/07/2017 the Invoice Discounting account was outstanding at £1,451,480, which exceeded the facility limit. He requested the invoice finance company for an advance which the finance company rejected.
  • Following the abovementioned rejection, on 03/07/2017 he caused FSCL to instruct its 2 main clients to make all future payments due to the company to an associated company under the control of him
  • FSCL did not have any authority to make any changes to the recipient bank account, it did not seek consent from the invoice finance company to do so nor did it inform the invoice finance company of the change in recipient bank account
  • Between 06/07/2017 and 17/07/2017 £81,812 of monies assigned to the invoice finance company were paid to the associated company by the 2 main clients and were not forwarded on to the invoice finance company. The associated company was dissolved in December 2017 and the monies diverted were not repaid by the associated company.
  • On 19 July 2017, he instructed the Insolvency Practitioner to place FSCL into liquidation. On the same day he informed the finance company of his decision to placing FSCL into liquidation. As at 19/07/2017 the invoice discounting facility was outstanding at £1,401,715. The invoice discounting facility was terminated with the liquidation of the company. The invoice finance company discovered the diversion of funds after the liquidation of FSCL and when they were making debt recovery from the 2 main clients.
  • At the date of liquidation, the invoice discounting account was outstanding at £1,327,682 partly as a consequence of his actions.
  • The invoice finance company have since recovered £199,623 from him after calling up the limited personal guarantee he was required to provide on provision of the invoice discounting facility. As at 10/07/2018, the finance company was owed £1,010,328 under the invoice discounting account. 

    This information is correct as at 2 / 8 / 2019

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